Using e-commerce model domestic brands can compete with foreign brands

As some enterprises in the business model of the continuous innovation, the industry has ignited the hope: E-commerce, such as the emergence of new business models, it is very likely that some of the market swamp domestic cosmetics brands pulled ashore.

The emergence of new business models such as E-commerce, most likely Some of the domestic cosmetics brands deep in the market swamp pull ashore.

Domestic brand Living space

It is reported that the domestic skin care industry from the 80 's began, to now has 30 years of history, but, looking at the situation of domestic cosmetics, the face of foreign brands eminence situation, domestic brand survival space.

First of all, from the local enterprise strength observation, Chinese cosmetics enterprises mainly small and medium-sized enterprises, the average output value of less than 10 million yuan, more than 500 million yuan scale of the national brand only Beijing Dabao, Chongqing, Shanghai, Home (600315, shares bar) and several, it is difficult to form a strong competitive group.

Secondly, for the cosmetics industry needs of capital investment, local brands are also difficult to meet. Some people in the industry pointed out that the current daily chemicals industry more and more show the "Capital strength type" characteristics. The gold content of channel construction is more and more high, the channel structure is increasingly complex, brand competition is fiercer. Guangdong Province, Japan's deputy Secretary-General Iwaya pointed out that the current market competition involves sales of the entire link of competition, and small and medium-sized enterprises often due to input is not in place, market construction is not timely, and the market response is not rapid, lack of competitiveness.

Finally, the shortage of high-end talent is also a major problem faced by enterprises. In this "talent-oriented" society, lack of talent means it is difficult to lay a good framework for sustainable development in business management and marketing. Highly praised by the industry's local brand in Shanghai, the Bai-Cao set can occupy a place in the midrange market, in addition to building their own brand, but also foreign well-known design companies and marketing team to help.

E-commerce or a lifeline

Facing the menacing foreign brands, why does the local brand survive? This topic has long been put on the day of the industry's agenda. Some people suggest that in this era of networking, local enterprises may be able to take the new channel of E-commerce boat, to seek their own a place of survival. This statement is reasonable, a data from the official Taobao show that 2012 1-June, Taobao and cat perfume/make-up category of the top 20 sales figures, the products have the card and PBA cosmetics under the make-up brand Yangsang finalists, respectively, fifth sixth. Visible, the use of E-commerce model, domestic brands can also be a showdown with foreign brands.

"Taobao + Day Cat Mall" 2012 1-June "perfume, make-up" category brand sales rankings

The research finds that the electronic commerce model is more obvious than the other offline mode. First, cost advantage. Take Yangsang products, as a well-known electric operator PBA cosmetics brand, it is sold online, there is no offline entity shop, face consumers. Compressed the intermediary channels, saving costs, you can save the cost of more used in product development, Word-of-mouth publicity and consumer feedback. This cost advantage is a lot of physical stores do not have. It is understood that the X brand since the listing, the 70% of the fund-raising for brand promotion, the other 30% for product development, this very uneven "formalism" result is likely to be product quality problems. Electric dealers will be more cost for product content, improve the quality, build a reputation, meet the needs of consumers, enterprises do not talk about the road to survival.

Second, due to the timeliness of network media, E-commerce channel feedback timely, high interaction. The 4P theory in marketing has already been replaced by the 4-C theory, and today's market has moved towards a "consumer-centric" stage. Using an evaluation system such as Taobao stores, businesses can interact with consumers and quickly collect experiences and evaluations from consumers. Product positioning, price, packaging, functions and other requirements will also touch the company's new product design inspiration, and the consumer needs into the development of new products. And the real store is very weak in getting consumer feedback, the majority of consumers awareness of the rights of protection is not strong, sound channels are not many, even if bought fake and shoddy products also just consider themselves unlucky, product dissatisfaction will not be said, but hidden in the heart, so that the shopkeeper is difficult to hear the true voice of consumers, Companies also have trouble hearing consumer feedback. But in the electronic commerce, because the network concealment and the interaction, the customer enthusiasm is very high, is easier to speak the innermost voice.